Sime Darby Plantation Berhad: Leading Sustainable Palm Oil Initiatives
Financial Overview
Sime Darby Plantation Berhad, a prominent Malaysian company listed on Bursa Malaysia, specializes in the cultivation and management of plantations, with a focus on palm oil production. As of July 17, 2025, the company’s close price stood at MYR 4.77, with a 52-week high of MYR 5.19 and a low of MYR 4.22. The company boasts a market capitalization of MYR 32,987,960,000 and a price-to-earnings ratio of 13.09. Sime Darby is committed to sustainable farming practices and has implemented various environmental and social initiatives to minimize its environmental impact and enhance local community livelihoods.
B30 Biofuel Pilot Project
On July 18, 2025, Sime Darby Plantation Berhad announced a significant collaboration with the Malaysian Plantation and Commodities Ministry (KPK), Petronas Dagangan Berhad (PETDAG), and the Malaysian Palm Oil Board (MPOB) to launch a B30 biofuel pilot project. This initiative aims to ensure a reliable and scalable supply of high-bio content diesel. Under the project, Sime Darby will transition its machinery and fleet on Carey Island in Selangor to use B30 biodiesel, a blend of 30% palm oil and 70% diesel, supplied by Petronas Dagangan in Malacca.
The transition is expected to reduce greenhouse gas emissions by up to 23% in the company’s daily operations. Mohd Shiram Mohd Shiran, the company’s managing director, emphasized that this move underscores Sime Darby’s leadership in decarbonization within the plantation industry. It aligns with Malaysia’s efforts to reduce reliance on fossil fuels and promote sustainable energy, marking a significant milestone in the journey towards net-zero emissions.
Government Initiatives for Smallholders
In related news, the Malaysian government is engaging with state governments to facilitate the conversion of land from rubber to palm oil cultivation for smallholder farmers. This initiative, led by the Plantation and Commodities Ministry, aims to help smallholders qualify for Malaysian Sustainable Palm Oil (MSPO) certification. Minister Datuk Seri Johari Abdul Ghani highlighted that MSPO certification is crucial for meeting European Union Deforestation Regulation standards, which require specific land status prerequisites.
Industry Engagement in Climate Change Legislation
Malaysia’s upcoming National Climate Change Bill, still in the drafting stage, will require active participation from industry players, including Bursa Malaysia-listed companies like Sime Darby. This legislation is part of Malaysia’s broader strategy to achieve net-zero carbon emissions by 2050. Datuk Seri Johari Abdul Ghani, overseeing the Ministry of Natural Resources and Environmental Sustainability, emphasized the importance of industry collaboration in this national effort.
Conclusion
Sime Darby Plantation Berhad continues to lead in sustainable practices within the plantation industry, demonstrated by its involvement in the B30 biofuel pilot project and its commitment to reducing carbon emissions. The company’s initiatives align with national efforts to promote sustainable palm oil production and achieve environmental sustainability goals. As Malaysia progresses with its climate change legislation, industry players like Sime Darby will play a crucial role in shaping a sustainable future.